Training finance staff is important because the accounting standards are frequently being revised to give more clarity to investors. This is certainly true with lease accounting.
Attending lease accounting webinars should prove useful for those needing to know more about leasing and how it impacts a set of accounts.
The figures must be entered accurately in any accounting situation. At the end of the month and at the end of the year, the figures will need to balance with the bank. It is also important to take note of accruals and prepayments.
You cannot teach accuracy but it will need to be instilled in users every time they attend a training course, whether that is in person or during a webinar. More training than ever is now online and convenient in that none of the participants will need to travel any distance. We can learn in an environment we feel comfortable with while interacting with other like-minded business people.
Paying Attention to Accounting Standards
A big part of accounting is to comply with the various accounting standards that are out there. Company failure comes with some serious penalties. Fines, for instance, will cost a company money. A tax investigation will take up valuable time. We always want to stay on the right side of the authorities.
Accounting software will make auditing easier when it can take care of these important accounting standards, such as IFRS 16, ASC 842, and GASB 87. These identify what leases are by definition and then ensure that they are recorded with greater visibility by showing up on a balance sheet when they qualify as the right kind.
Online Meetings and Courses to Avoid Pitfalls
The value of a webinar cannot be underestimated. It is a chance to meet other people online who are using the same software and have the day-to-day job of managing the finances of leases.
By putting everyone together with the accounting knowledge and software knowledge we can iron out any pitfalls that anyone is likely to encounter. It is the experience of using software that teaches us what to do and what not to do, and not just with the software but the figures that we are working with. Leasing figures need to be handled particularly carefully to avoid encountering unwanted issues. Sharing knowledge online is extremely useful for businesses.
Leases can be problematic because:
- They are scattered between the different areas of a business.
- Accounting standards change regularly.
- There are many different lease types to know about.
- Not all leases will need to appear on the balance sheet.
We should be aware that we only need to include leases that are less than 12 months in duration on our balance sheet. Also, it is capital leases that are included on balance sheets. In this instance, leases will be treated as if owned by the lessee. Capital leases are counted as debts in accounting terms.
Training is invaluable with any job where there are frequent changes or complexities. When we attend these online training sessions we can learn from not just the trainers but others in the same position as us who are encountering problems with interpreting accounting standards and using software to best effect.
Software should not become a hindrance but a help. Knowing how to use it is just the beginning because there will be various tricks of the trade that means one user can make more use of it than another. Where something does not prove useful it should most definitely be abandoned but we believe that accounting software is something that is helping many businesses guide their staff to more accurate and efficient accountancy.